New York's Summer Energy Outlook

Summer 2024

These days, the news is full of stories about energy. Whether it’s gasoline, fuel oil, natural gas, or electricity, the forces of supply and demand are having an impact on the commodities that are important to all of us.

The following information will help you learn more about New York’s summer electric supply situation — what’s happening and why. It will give you an understanding of New York’s electricity needs, how you can control your electric costs, and the steps that are taken to ensure the reliability of the electric system.

Adequate Supply 

On a statewide basis, the New York Independent System Operator (NYISO) forecasts that New York should have enough electricity to meet demand for the period from June through September. The NYISO projects that New York’s peak demand will be 31,541 megawatts (MW).  A review of the electric system and utility preparedness indicates that New York will have 40,733 MW worth of capacity resources which will meet summer peak demand and provide a cushion in case of severe hot weather. 

System Reliability 

On an extremely hot day — when electricity usage is at its peak — New York's electric utilities may take special steps to maintain the reliability of the state's electrical system. 

Utilities may: 

• Issue an “energy alert” and public appeals to residential customers to voluntarily reduce energy use. 
• Contact large business customers directly to request they reduce their consumption. 
• Activate demand reduction programs for large customers. 

If the need to reduce usage continues, utilities may: 

• Institute electric voltage reductions. 
• Request assistance from neighboring electric systems. 
• Cut electricity supplies to customers in certain areas. 

If there is an Energy Alert

During an energy alert, you should make every effort to reduce your electricity use.  Turn off all non-essential electrical devices, lights, and appliances.  Your actions may help maintain steady and uninterrupted service.

Summer Pricing Outlook 

In general, energy bills are expected to be about 3% lower on average than last summer. On a statewide average basis, a typical residential customer that uses 600 kWh of electricity per month is expected to pay about $52 per month for supply. Full service residential supply bills will vary from this estimate based on the customer's location and utility. 

Bill costs will also depend on the actual, rather than estimated, energy prices. The commodity price of electricity or natural gas rises and falls based on many factors, including weather, the balance between supply and demand, and the current global unrest. When there is a widespread and prolonged heat spell, overall demand for energy increases, which puts upward pressure on prices. Any change in the cost of supply can have a significant impact on the overall energy bill.  

Understanding Your Energy Bill

An energy bill consists of two parts: delivery and supply. The delivery charge is the cost to transport the energy to you throughout the utility’s system.  This fee is regulated by the NYS Public Service Commission. The supply charge is the cost of the electricity or natural gas commodity itself. The supply price is determined in a competitive marketplace and is not controlled by the Commission or the utilities. The utilities do not make a profit from the supply charge. 

Your energy bill depends on how much electricity or natural gas you use and the rate you are paying. In general, the more energy you use, the higher your bill will be. The price you pay for electricity generally depends on your supplier’s cost to buy that electricity. If the underlying cost of fuel used to generate electricity — like oil or natural gas — increases, the price of your electricity may increase.

Whether you own your own home or rent an apartment, there are steps you can take to control your energy use and manage your energy bills. Visit Managing Utility Costs for information on bill payment options and financial assistance programs.

The New York State electric utilities have established practices and procedures for halting terminations due to non-payment during extreme heat events. These procedures are approved and detailed within each respective utilities’ websites.

• Central Hudson: Special Protections During Hot or Cold Weather
• Con Edison: Special Protections During Hot or Cold Weather
• National Grid: Extreme Heat Protections
• New York State Electric & Gas: Extreme Weather
• Orange & Rockland: Special Protections During Cold or Hot Weather
• PSEG – Long Island: Extreme Weather
• Rochester Gas & Electric: Extreme Weather

Your energy costs are made up of two factors: the cost of the energy product and the amount of the energy you use. No matter where prices go or what the season is like, you can make the most of your energy dollars by taking basic steps to reduce your usage. The less energy you use in your home, the more you will save. 

Cool Ideas for Saving Energy: 

• Use fans more and air conditioners less to keep you cool while reducing your electricity bill. Fans use much less electricity than air conditioners. 
• Turn off your air conditioner when you leave home and set it at 78 degrees or higher to save on your cooling cost.
• Use a programmable thermostat on your air conditioning and a timer on your pool filter. 
• Close drapes, windows, and doors during the day to block out heat from the sunlight.
• Opt for energy efficient LED light bulbs 
• Use major home appliances such as washers, dryers and dishwashers, early or late in the day. 
• Shop for the EnergyStar symbol for energy efficiency when you are in the market for a new air conditioner or any major appliance.
• Visit NYS Energy Research and Development Authority’s (NYSERDA’s) Energy Advisor at https://energyadvisor.ny.gov/ for tips on reducing energy usage and costs, while gathering information on clean energy availability options. 

Energy Efficiency Programs

In addition to low-cost or no-cost steps you can do yourself, there are programs available through several government agencies and New York's major energy utilities to make energy efficiency improvements to your home or business. These improvements will help lower your energy use and make energy bills more affordable. There are also programs to help low-income customers with energy efficiency solutions. For details about their programs, contact: 

• NYS Energy Research and Development Authority (NYSERDA): Offers financial assistance and energy efficiency improvement programs. Call 1-866 NYSERDA (1-866-697-3732) or visit www.nyserda.ny.gov. 
• NYS Homes and Community Renewal (NYSHCR): Oversees the New York’s Weatherization Assistance Program. Call 518-474-5700 or visit www.hcr.ny.gov/weatherization.

Home Energy Assessment

One of the things that you can do to control your bill is to find out where you are losing energy and money. You can conduct an energy audit of your home or apartment that will help show where problems exist and how they can be corrected. 

• Professional Assessments: New York State agencies and some utilities offer home energy assessments at little to no cost. A licensed contractor will come to your home and evaluate your lighting, heating, cooling equipment and appliances, and offer energy-saving recommendations. With some programs the contractor will install energy-saving items at no charge, including LED bulbs, smart power strips and more. 
• New York Statewide Programs: Visit NYSERDA’s website at www.nyserda.ny.gov.
• Utility Programs: Contact your utility to see if it offers a home energy assessment. 
• NYS Electric and Natural Gas Utilities: Offer a variety of energy efficiency programs to help their customers reduce their energy use. Contact your utility and ask about its available programs. 
• Do-It-Yourself Assessments: There are many do-it-yourself audits available online, such as the US Department of Energy’s do it yourself energy audit to identify ways to save energy in your home. 

Protect Yourself 

To protect your health and safety in the event of a storm, accident, or other situation that causes your electricity to go out, consider the following steps: 

• Check to see if your neighbors have power. 

• Call to notify your utility of the outage. 

• Keep a battery-operated radio and flashlight on hand, as well as a supply of batteries. 

• Have at least one telephone available in your house that does not require household electricity to operate. 

• Have a list of emergency numbers readily available. 

• Keep refrigerator and freezer doors closed as much as possible. Food will not spoil for six to nine hours in a refrigerator without electricity. Frozen foods will keep about 24 hours. 

• Register special needs customers with their utility company so they will receive priority attention.

Follow all safety precautions for operating portable generators. For more information, visit the Red Cross page on how to use generators at home.

Protect Your Appliances 

Using dedicated surge protectors can help protect your appliances from power surges. In the event of a power outage or voltage reduction, make sure you do the following: 

• Disconnect sensitive electronic appliances such as your personal computer, TV, VCR, microwave, and stereo. 

• Turn off other appliances that were on.  This prevents blowing fuses or tripping circuit breakers when the power does come back on. 

• Follow all safety precautions for operating portable generators.